On August 11, 2021, the General Insurance Business (Nationalisation) Amendment Bill, 2021 was passed by Rajya Sabha. The Bill seeks to amend the General Insurance Business (Nationalisation) Act, 1972. The Act was enacted to nationalise all private companies undertaking general insurance business in India
Key Highlights:
- Omit the proviso to Section 10B of the Act so as to remove the clause that the Central government must hold at least 51 percent of the shareholding.
- Insert a new section 24B providing for cessation of application of the Act to such specified insurer on and from the date on which the Central Government ceases to have control over it.
- Insert a new section 31A providing for liability of a director of the specified insurer, who is not a whole-time director, liable for any acts of omission or commission committed with his knowledge and consent.